Introduction to Hypothesis Testing

Introduction to Hypothesis Testing I. Terms, Concepts. A. In general, we do not know the true value of population parameters - they must be estimated. However, we do have hypotheses about what the true values are. B. The major purpose of Hypothesis Testing is to choose between two competing hypotheses about the value of a population parameter. For example, one Hypothesis might claim that the wages of men and women are equal, while the alternative might claim that men make more than women.

for a two-tailed alternative hypothesis H0: p = .5 HA: p <> .5 Reject the null hypothesis if the computed test statistic is less than -1.96 or more than 1.96 P(Z # a) = α, i.e., F(a) = α for a one-tailed alternative that involves a < sign. Note that a is a negative number. H0: p = .5 HA: p < .5 Reject the null hypothesis if the

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